Regional Bank Meltdown
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Yeah, we told you this was coming. New York Community Bank, again, I don’t know, stocks down another 20%. And again, this is a part of the entire commercial real estate issues that we’ve discussed at length, not only here in the podcast, but on the radio show as well. The interesting thing about New York Community Bank is it’s almost like the loan officers there. It’s like the, you know, when Oprah Winfrey’s giving stuff away, you get a loan, you get a loan.
Everybody gets a loan for a brand new commercial building. Again, they were getting fat and happy for a period of time and many investors unfortunately were sucked into this stock via this oversized dividend. Again, we’ve talked about that before here on the program. Beware of oversized ridiculous dividends. It is 99 .9 % of the time.
It’s something wicked this way comes when you see things like this happen. Again, I don’t see how this thing is going to remove itself from the death spiral. I don’t know if, you know, Jamie Dimon and JP Morgan are sniffing around this or they just think it’s too toxic at this point in time. Big difference between a New York Community Bank and a Silicon Valley Bank signature some of these others is, you know, some of the other, the private,
that they had that JP Morgan sucked up. I don’t see that happening with New York Community Bank. Is this another domino to fall? More than likely. But the reality of the situation is we’ve got a long bloody way to go. It’s funny, it was yesterday, it was on CNBC. I had one of these analysts from Real Estate Investment Trust, how shall I put it, trying the best to put lipstick on the proverbial pig when it comes to what’s going on out there.
Oh yeah, the New York’s coming back and the A -class buildings, they’re doing okay, but with the B and C, not so much. And even the A -class buildings, they’re still not nearly as, at the capacity that they should be considering that everybody’s leaving the other buildings. And we’d mentioned before here as well on the program, Prime Real Estate right next to the major transportation hub in New York City that was slated to be an A -class, fancy pants, new office building. They’re building tennis courts. Watchdog on wallstreet .com.
